GST Guide NZ: how GST works in New Zealand

GST Guide NZ is our plain English hub for Goods and Services Tax in New Zealand. GST is a 15% tax on most goods and services, including many imports, and it sits on top of the price when you are registered to charge it.

If you run a small business, contract for clients, or freelancing is your main income, this page is the starting point. Pick a topic card below, or keep reading for how the system works for the 2026/27 tax year (1 April 2026 to 31 March 2027) and what Inland Revenue (IRD) expects.

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What GST is (and what it is not)

On IRD’s GST overview, GST is described as a tax added to the price of most goods and services. You collect it from customers when you are registered, claim it back on business costs that relate to your taxable activity, and pay the difference (or claim a refund) when you file. It is not income tax, and it is not PAYE.

The standard rate is 15%. That rate has applied since 1 October 2010. There is no legislated change to 15% for 2026/27. For day to day add or remove maths, use the free GST calculator. For a deeper walkthrough of the whole system, see the ultimate guide to GST in New Zealand.

How to add GST and how to remove it

IRD’s worked examples on calculating your GST and in GST guide IR375 use the same numbers every Kiwi learns first.

Do not take 15% off an inclusive total. That is the classic reverse GST mistake. $230 inclusive has $30 of GST in it ($230 × 3 ÷ 23), not $34.50. More traps sit in 10 common GST mistakes in NZ.

When you must register for GST

IRD’s registering for GST page says you must register if you carry on a taxable activity and either of these applies: your turnover was at least $60,000 in the last 12 months, or you expect it will be at least $60,000 in the next 12 months; or you add GST to the prices of the goods or services you sell.

That $60,000 figure is a rolling 12 months of taxable supplies. It is not limited to a 1 April to 31 March year. Under the Goods and Services Tax Act 1985 you apply within 21 days of becoming liable. The rolling test is unpacked in our $60,000 GST threshold guide, and the steps sit in how to register for GST in NZ.

You register in myIR. IRD says it usually processes applications within 10 working days. Once registered you charge GST, file every return (including nil returns), pay what you owe, and keep records. IRD’s record keeping guidance says keep records for at least seven tax years.

Voluntary registration under $60,000

You can still register if turnover is under $60,000. IRD’s voluntary registration page lists the usual upsides: you can claim GST on taxable activity costs, and it can make dealing with GST registered suppliers cleaner.

The downsides are real too: you must add GST to prices, file returns on time, and late filing or late payment attracts penalties. Voluntary registration often helps if your customers are other GST registered businesses. It often does not help if you sell mainly to the public and cannot lift prices by 15%. Weigh that in should I register for GST voluntarily. New operators can also follow the new business GST compliance roadmap.

How often you file a GST return

You choose filing frequency when you register. IRD’s accounting basis and filing frequency table (any 12 month period) is:

• Six monthly: available if sales are under $500,000. Two returns a year. Suitable when transaction volume is low.
• Two monthly: available if sales are under $24 million. IRD’s default for many new registrations if you do not choose.
• Monthly: available to anyone. Compulsory if sales are over $24 million. Useful if you regularly get refunds.

For a 31 March balance date, two monthly periods usually end in odd months (May, July, September, November, January, March). Six monthly periods usually end 30 September and 31 March. Confirm your dates in myIR. A filing walkthrough is in how to file your GST return in myIR, and a date list sits on the GST tax due date calendar.

Accounting basis: invoice, payments, or hybrid

Accounting basis decides when GST goes on the return, not the 15% maths. If you do not choose, IRD defaults you to the invoice basis.

• Invoice basis: available to anyone. You generally return GST when you invoice a customer, and claim when a supplier invoices you (if you hold taxable supply information).
• Payments basis: available if sales are $2 million or less (and likely to stay under that). You return GST when customers pay you, and claim when you pay suppliers.
• Hybrid: available to anyone, but uncommon for small firms. Invoice basis for sales, payments basis for expenses, which can create cashflow pressure.

A contractor who invoices late but pays suppliers in cash often prefers payments basis. Compare the options in invoice basis vs payments basis.

Tax invoices and taxable supply information

From 1 April 2023 IRD talks about taxable supply information rather than only the old “tax invoice” label. You can still title a PDF “Tax Invoice”. What you must show depends on the value of the supply (including GST): under $200 the buyer often does not need a full document from you, but both sides still keep records; more than $200 up to $1,000 needs seller details, GST number, description, and GST amount or a clear “GST included” statement; over $1,000 also needs information that identifies the buyer.

Build a compliant document with the GST invoice generator. Contractors who also have tax withheld from pay should pair that with the withholding tax calculator, and sole traders estimating year end tax can use the self employed tax calculator.

Zero rated versus exempt supplies

Both mean you do not charge 15% on the sale. The difference is what you can claim. IRD sets this out under zero rated supplies and exempt supplies.

Zero rated (0%). Still a taxable supply. You can usually claim GST on related costs. Common examples include exported goods, many exported services (conditions apply), sale of a going concern between registered persons, and some land sales between registered persons. See exporting goods from NZ and GST on services to overseas clients.

Exempt. Outside GST. You cannot claim GST on costs of making that supply. IRD examples include residential rent, most financial services, and donated goods and services sold by a non profit. Landlords should read GST on residential rent in NZ. The split is explained in exempt vs zero rated supplies, and commercial buildings sit in the commercial property GST guide.

GST due dates, late filing, and interest

Once registered you must file a GST return for every taxable period, including a nil return. IRD’s filing and paying GST page says you cannot get extra time to file.

The due date is usually the 28th of the month after the period ends. Two exceptions from IRD: period ending 30 November is due 15 January, and period ending 31 March is due 7 May. If that day is a weekend or public holiday, the next working day applies.

Provisional tax can fall on some of the same days. Use the provisional tax calculator for instalments, and read how the two systems interact in GST provisional tax. If a GST payment is late, the late GST penalty calculator estimates late payment penalties and use of money interest from IRD published rates. If the return itself was wrong, see how to correct GST return errors.

Contractors, employees, and industry rules

GST registration is about your taxable activity, not your job title. Staff wages use PAYE. Contractors who invoice clients often need GST once turnover crosses the threshold, and may also have schedular withholding on invoices. Compare the roles in contractors vs employees, then read GST for contractors basics. Cash wages sit on the PAYE calculator.

Sector guides live under the industry specific GST category, including Uber and gig economy GST rules, GST for content creators, and GST for real estate agents.

Property, expenses, and advanced rules

Mixed use assets, motor vehicles, and change of use adjustments sit in the property and assets GST category, including GST on motor vehicles, claiming GST on a car or home office, and GST on property sales NZ.

Day to day claims such as entertainment, bad debts, deposits, and reimbursements sit under business and expenses GST. Grouping, audits, reverse charge style imported services, and niche rules sit under advanced GST rules, including the IRD audit preparation checklist.

Core registration and filing posts are also grouped in the GST basics guide category. Employer perks on a company vehicle are fringe benefit tax, not a GST split: use the FBT calculator for that.

What this GST Guide NZ page is checked against

Last full check: 25 August 2026. Rates, thresholds, filing options, and due date exceptions were matched to ird.govt.nz/gst, IRD calculating GST, registering for GST, filing and paying GST, zero rated supplies, taxable supply information, and GST guide IR375. GSTCalc.nz is a free New Zealand publisher of tax calculators and guides. Ads may fund the site. We are not Inland Revenue and this is not tax advice. Figures are working papers.

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